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Prestige Estate Projects Ltd had reported steady performance in the March quarter. Pre-sales volume at 2.76 million square feet improved 35 per cent year-on-year (y-o-y). In value terms, sales increased by 53 per cent y-o-y to Rs 1854 crore in Q4FY21. For FY21, the company saw sales in value and volume terms rise by 20 per cent y-o-y.
But analysts say, investors in the stock are more pleased by the company’s decision to deleverage. The recently concluded asset monetization deal with the Blackstone Group helped the company cut net debt by Rs 7,150 crore to Rs 1,314 crore at the end of Q4FY21. Consequently, its debt/equity metric improved to 0.19 times. Investors would reckon that the company signed definitive agreements in March with global investment firm Blackstone to sell select assets in its completed office, retail, and hotel properties portfolios in the first phase of this deal worth Rs 9,160 crore.
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For investors in this stock, a pile of debt had been a key concern so expectations were that the company would use cash from the Blackstone deal to pare debt. And it did. Going ahead, analysts say, the focus of investors in this stock would shift to timely completion of projects in residential and commercial segments. The company launched two new projects in Bengaluru aggregating 4.74 million square feet during the quarter. In FY21, the company launched seven projects of around 11.85 million square feet. In the residential segment, the company has 11 upcoming projects and 13 projects in the commercial segment.
Stock Covered in the news
